FXstreet.com (Barcelona) - The Aussie has extended profits against the Greenback from 2-week low at 0.8567 reached last Friday during today's session with the pair rising more than 1.40% so far today from opening price action at 0.8655 to post intra-day high at 0.8775.
According James Chen, Chief analyst at FX Solutions, has continued to respect a long-term uptrend support line: An upside breakout above 0.8850 should confirm a continuation of the current uptrend, shooting first for resistance in the 0.8950 price region. The long-term upside target resides around the 0.9850 long-term high, which is a key 138.2% Fibonacci extension of the current uptrend. A downside breakout of the current consolidation should breakdown below the noted uptrend support line, targeting first the key 0.8500 support/resistance price region. Incidentally, there is also currently some bearish divergence between price and the Stochastics oscillator, as shown on the chart.